Hidroelectrica to add capacity from renewable sources of at least 500 MW by 2027

Hidroelectrica estimates the commissioning of an additional capacity from renewable sources of at least 500 MW by 2027, according to the 2023-2027 Management Plan.

The general objective pursued by the Ministry of Energy for the period 2023-2027 is for Hidroelectrica to be the leader and the central pillar of the energy transition in Romania, an official document shows.

Through the Letter of Expectations, the Ministry of Energy established the priorities and essential development directions of Hidroelectrica for the period 2023 – 2027, as follows:

1. Maintaining the existing portfolio of hydroelectric power plants at an optimal level of availability in relation to the given hydropower potential, by implementing modernization and retechnology programs, as well as equipment and construction maintenance programs.

2. Completion with priority of the investment objectives of hydroelectric plants in the Hidroelectrica portfolio in various stages of execution.

3. Diversification of the production portfolio by adding new electricity production capacities from renewable sources developed both internally and through possible acquisitions, including regional expansion.

4. Diversification of the source of income through the vertical integration of the Company, further developing the supply portfolio.

5. Ensuring the predictability and stability of the company’s results and maintaining the policy of distributing 90% of the company’s net profit in the form of dividends to shareholders.

6. Implementation of the best ESG (Environmental, social and governance) standards, specific to listed companies with which Hidroelectrica is compared by investors.

The targeted strategy for the development and evolution of Hidroelectrica is aligned with European policies and the ambitious targets assumed by Romania for the decarbonisation of the economy by 2030, namely 49% renewable energy from total consumption, directly contributing to the provision of new production capacities from renewable sources, wind and solar to gradually replace existing fossil fuel capacities slated for closure.

In November 2023, the Supervisory Board decided to appoint the following people as members of the Directorate for a 4-year term, starting on November 7, 2023:

Karoly Borbely, as a member of the Hidroelectrica Directorate and President of the Directorate ( Chief Executive Officer – “CEO”);

Bogdan-Nicolae Badea, as a member of the Hidroelectrica Directorate (Chief Investment Officer – “CIO”);

Radu-Ioan Constantin, as a member of the Hidroelectrica Directorate (Chief Administrative Officer – “CAO”);

Marian Fetita, as a member of the Hidroelectrica Directorate (Chief Financial Officer – “CFO”);

Ianas Radoi, in the capacity of Member of the Hidroelectrica Directorate (Chief Operating Officer – “COO”).